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A Banking Disaster Avoided (For Now)


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2023 Mar 13, 5:37am   696 views  7 comments

by ohomen171   ➕follow (2)   💰tip   ignore  

#siliconvalleybank Miracles do happen. One happened yesterday. Silicon Valley Bank failed as well as Signature Bank and Silvergate Bank were closed by Federal regulators. I gave a grim briefing to certain readers warning of an economic catastrophe when major companies could not access their funds to pay basics like payroll for employees.
Janet Yellen devised a de facto bailout program that got the blessing of President Biden. When depositors show up at the three banks cited above, it will be, seemingly, "business as usual." Everybody will get paid.
What went wrong with these banks? These banks went out and bought long-term bonds at low interest rates. When interest rates rose, these bonds dropped in value. The banks became technically insolvent. Let us focus on Silicon Valley Bank. It has been in business 40 years. Its capitalization was roughly $209 billion. Joseph Gentile was the chief administrative officer of the bank. In a prior life, he was chief financial officer of Lehman Brothers. He left one year before this giant bank collapsed. He knew quite well what happens when a bank gets reckless with its investments in pursuit of higher profits. He repeated the same mistake with his current employer. Here is a great report on Silicon Valley Bank:

https://www.youtube.com/watch?v=eqAwwEs6Jq0
Everyone get ready for real estate prices to drop. There will be some big bargains out there.

Comments 1 - 7 of 7        Search these comments

1   stfu   2023 Mar 13, 6:19am  

Futures seem to disagree
2   NuttBoxer   2023 Mar 13, 7:59am  

One, there's already a thread on this. Two everything happening screams the opposite. I guess until your bank closes, and you get denied access to your funds, you won't admit our situation.
3   Robert Sproul   2023 Mar 13, 8:45am  

Go Woke....

.....get bailed out.
4   HeadSet   2023 Mar 13, 10:53am  

cisTits says

Depositors get access to their FDIC insured deposits but will be taking haircuts for deposit amounts above that.

I see you noticed that statement did not age well.
5   Ceffer   2023 Mar 13, 11:02am  

Woke Fraud as virtue signaling duck blind for Bank Fraud. What could possibly go wrong? Don't two wrongs make a bailout? Woke is the marching anthem of morons.
I love these confidence traps that take down the elite fools. Why, the MSM said SVB investment was a no brainer, LOL!
Money minted from the vapor, to vapor it returns.
6   Eric Holder   2023 Mar 13, 2:14pm  

HeadSet says


cisTits says


Depositors get access to their FDIC insured deposits but will be taking haircuts for deposit amounts above that.

I see you noticed that statement did not age well.



That's what happens when you don't take Harry&Meghan into account.
7   Patrick   2023 Mar 28, 10:36pm  

ohomen171 says

Let us focus on Silicon Valley Bank. It has been in business 40 years. Its capitalization was roughly $209 billion. Joseph Gentile was the chief administrative officer of the bank. In a prior life, he was chief financial officer of Lehman Brothers. He left one year before this giant bank collapsed.


https://rudy.substack.com/p/privatizing-profits-and-socializing



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